# Rounding strategy

Take a quick look at your menu. Do you have items with prices like \$14.25, or \$3.85? Did you use a pricing strategy to determine if \$14.25 is the optimum price to charge?  You can increase profits by rounding in the right increments.

If you're like most foodservice operators, you probably used some form of formula pricing or mark-up on cost. If that's the case, we've got good news—you're leaving money on the table.

It's good news, because we've got a trade secret that makes it easy to pick up that money and send it straight to the bottom line.

Take advantage of this hidden opportunity to make significant flow-through profit by understanding that pricing a menu has a lot to do with psychology.

Did you know that for menu items priced above \$5.00, guests distinguish price increments of 50¢ or 95¢. With menu items priced below \$5.00, the significance of a dime or a quarter is greater, and guests are a bit more price sensitive. Items with pricing increments of 25¢, 50¢, 75¢, and 95¢ work best.

How does Rounding work? Instead of charging \$14.25 for your prime rib, you can charge \$14.50, and you won't lose sales. For each order of prime rib you sell, you'll instantly make an additional 25¢ in flow-through profit. When multiplied over the course of a year, that's a lot of extra change!

How can Rounding affect your own bottom line profit? We've set up a special calculator so you can see.